Fiscal Challenges of Population Aging in Brazil

Author/Editor:

Alfredo Cuevas ; Izabela Karpowicz ; Carlos Mulas-Granados ; Mauricio Soto

Publication Date:

April 26, 2017

Electronic Access:

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Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary:

In recent decades, population has been aging fast in Brazil while old age pensions and healthrelated spending have increased. As the population ages, the spending trend threaten to reach unsustainable levels absent reforms. Increasing the retirement age is key, but by itself will not provide sufficient savings to close the pension system financing gap, and reforms reducing replacement rates are necessary. In the area of health, there is scope for improving expenditure efficiency by strengthening outpatient care and regional networks, and developing clinical guidelines for cost-effective treatments and drugs. Reforms are urgent, so that they can be gradual.

Series:

Working Paper No. 2017/099

Subject:

English

Publication Date:

April 26, 2017

ISBN/ISSN:

9781475595550/1018-5941

Stock No:

WPIEA2017099

Pages:

29

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